Brent crude rose above the $95-a-barrel mark for the first time in six weeks on Wednesday, extending gains as escalating military tensions between the U.S. and Iran heightened concerns over oil supply disruptions from the Middle East.
Real-time market data showed Brent crude trading at $95.19 a barrel, up 4.23%, at 3:15 p.m. IST, after touching an intraday high of $95.19. U.S. benchmark West Texas Intermediate (WTI) was also sharply higher, reflecting growing geopolitical risk premiums in energy markets.
Multiple media reports said that the rally gathered pace after the United States carried out strikes on Iranian military targets for an 11th straight night, targeting missile and drone launch sites, command centres and air defence infrastructure.
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Investors also monitored developments in the Red Sea after Yemen's Iran-backed Houthi movement threatened a naval blockade targeting Saudi-linked shipping. The warning has prompted some oil tankers to alter their routes, stoking concerns over potential disruptions to crude exports from one of the world's largest oil-producing regions.
Meanwhile, Tehran continued retaliatory attacks on U.S. military positions across the region, with reported strikes on facilities in Bahrain, Kuwait and Jordan.
According to media reports, U.S. President Donald Trump said Iranian officials were seeking urgent talks but maintained that Washington would engage only if Tehran was prepared for "meaningful negotiations." He also said the U.S. could soon target areas near Pickaxe Mountain, a heavily fortified underground site close to one of Iran's key nuclear enrichment facilities.
Iranian military officials warned that any strike on nuclear sites or other strategic facilities would mark a significant escalation, according to Iranian state media.
Separately, reports indicated that Iran said it had intercepted and halted two non-compliant oil tankers attempting to transit the Strait of Hormuz, adding to concerns over one of the world's most critical energy shipping routes.
The latest developments have pushed Brent crude to its highest level since early June, with traders increasingly pricing in the possibility of prolonged supply disruptions if hostilities continue to escalate.
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